KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States.
KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, investment, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.
KeyCorp Fundamentals Summary
How do KeyCorp's earnings and revenue compare to its market cap?
Is KEY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for KEY?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for KEY. This is calculated by dividing KEY's market cap by their current
preferred multiple.
What is KEY's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$17.92b
KEY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: KEY is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US Banks industry average (9.9x)
Price to Earnings Ratio vs Fair Ratio
What is KEY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
KEY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
8.4x
Fair PE Ratio
13.5x
Price-To-Earnings vs Fair Ratio: KEY is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).
Share Price vs Fair Value
What is the Fair Price of KEY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: KEY ($19.21) is trading below our estimate of fair value ($42.59)
Significantly Below Fair Value: KEY is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is KeyCorp forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KEY's forecast earnings growth (3.4% per year) is above the savings rate (1.9%).
Earnings vs Market: KEY's earnings (3.4% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: KEY's earnings are forecast to grow, but not significantly.
Revenue vs Market: KEY's revenue (3.5% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: KEY's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KEY's Return on Equity is forecast to be low in 3 years time (13%).
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Past Performance
How has KeyCorp performed over the past 5 years?
Past Performance Score
2/6
Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
12.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KEY has high quality earnings.
Growing Profit Margin: KEY's current net profit margins (29.7%) are lower than last year (31.2%).
Past Earnings Growth Analysis
Earnings Trend: KEY's earnings have grown by 12.3% per year over the past 5 years.
Accelerating Growth: KEY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KEY had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Banks industry average (8.8%).
Return on Equity
High ROE: KEY's Return on Equity (15.6%) is considered low.
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Financial Health
How is KeyCorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score
6/6
Financial Health Score 6/6
Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: KEY's Assets to Equity ratio (13x) is moderate.
Allowance for Bad Loans: KEY has a sufficientallowance for bad loans (242%).
Low Risk Liabilities: 85% of KEY's liabilities are made up of primarily low risk sources of funding.
Loan Level: KEY has an appropriate level of Loans to Assets ratio (60%).
Low Risk Deposits: KEY's Loans to Deposits ratio (76%) is appropriate.
Level of Bad Loans: KEY has an appropriate level of bad loans (0.4%).
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Dividend
What is KeyCorp current dividend yield, its reliability and sustainability?
Dividend Score
6/6
Dividend Score 6/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
4.06%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: KEY's dividend (4.06%) is higher than the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: KEY's dividend (4.06%) is in the top 25% of dividend payers in the US market (4.05%)
Stability and Growth of Payments
Stable Dividend: KEY's dividends per share have been stable in the past 10 years.
Growing Dividend: KEY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (33.4%), KEY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KEY's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Chris Gorman (61 yo)
2.92yrs
Tenure
US$8,653,484
Compensation
Mr. Christopher Marrott Gorman, also known as Chris, has been Chairman and Chief Executive Officer at KeyCorp since May 01, 2020 and serves as its Director since September 19, 2019. He served as its Chief...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD8.65M) is below average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: KEY's management team is seasoned and experienced (7.3 years average tenure).
Board Members
Experienced Board: KEY's board of directors are considered experienced (9.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
KeyCorp's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/11 00:00
End of Day Share Price
2022/08/11 00:00
Earnings
2022/06/30
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.